Key US Marketing & Consumer Trends, H1 2025

Introduction

This guide distills our Audience Lab’s most critical insights from H1 2025 across four generations, AI-driven advertising, influencer/UGC marketing, ESG priorities, and emerging AR platforms. It also includes actionable recommendations and forecasts for H2 2025, so you can catch emerging trends and plan ahead. Use these data points to inform campaigns that resonate with each cohort and stay ahead of competition.

Generational Snapshots

Gen Z (18–27)

Black silhouette of a creature with a body covered in bubbles and a round, smiling face, set against a plain white background.

63 % of Gen Z and Millennials trust influencers more than brands, making user-generated content (UGC) 2× more likely to sway their decisions than traditional ads.

Trust & Influence

56 % of Gen Z have consciously purchased products with sustainable packaging in the last six months; 43 % are willing to pay extra for eco-friendly packaging.

Sustainability Mindset

63 % of Gen Z consumers first encountered virtual “try-on” tools for beauty/fashion on TikTok or Instagram Reels.

Virtual Try-On Adoption

Millennials (28–42)

Black and white portrait of a woman with her arms crossed, wearing a dark blazer with a high collar, looking directly at the camera.

ESG Premium: 60 % of Millennials say they would pay more for environmentally sustainable products, with many indicating ~10 % extra spend for carbon-neutral packaging.

Content Formats: Instagram carousels (capsule visuals) outperform generic CSR posts by 4× in shares among Millennial audiences.

Influencer Spend Growth: US influencer marketing spending grew to $9.15 billion in 2024 and is projected to exceed $10.52 billion in 2025.

Person wearing an orange leather coat and patterned black and white cap, carrying several large pillows of different colors and textures.

Gen X (43–58)

AR-Showroom Engagement

18 % of Gen X consumers attended AR-powered real-estate tours in H1 2025, driving a 17 % increase in qualified leads for luxury developers.

Sustainability Focus

64 % of Gen X factor sustainability into purchase decisions; 67 % prefer brands that share verifiable environmental-impact data.

Preferred Content

Long-form LinkedIn thought-leadership (1 500–2 000 words), AR showroom demos, and premium email newsletters remain top drivers for this cohort.

Gen Alpha (≤ 14)

Roblox/Minecraft Engagement

Roblox and Minecraft branded collabs attracted 340 000 unique US visitors in H1 2025 (↑ 55 % QoQ), leading to a 12 % bump in holiday preorders for kid-focused FMCG brands.

AR Usage

Over 90 % of Gen Zers (proxy for Gen Alpha interest) are willing to use AR to visualize products (e.g., furniture/apparel), making AR a critical touchpoint for family-influenced spending decisions.

High-Opportunity Niches

Ed-tech toys with AI-driven recommendations; gamified loyalty programs that offer digital rewards redeemable in the real world.

Abstract digital drawing with red, black, and purple zigzag lines on a white background.

AI & Digital Advertising

US Digital Ad Spend: Digital advertising hit $317 billion in 2025 (74 % of total US ad spend), up 11.6 % YoY, cementing digital’s dominance.

Programmatic Growth: Programmatic ad purchases account for 85 % of US digital ad spend in early 2025, with overall programmatic expenditures at $270 billion (↑ 13.3 % YoY).

Digital Video Surge: US digital video ad spend is forecast at $72.4 billion in 2025 (↑ 14 % YoY), representing 58 % of total video ad spend.

AI-Driven Personalization: Brands leveraging AI for dynamic creative saw +22 % engagement lifts on Instagram Reels; 31 % of Gen Z use AI chatbots for product discovery, prompting 19 % of US marketers to build generative-AI SEO strategies in 2025.

Group of four young women standing in front of lockers, dressed in trendy, streetwear fashion with hoodies, sunglasses, and boots.

Influencer & UGC Marketing

Spending Explosion: US influencer-marketing spend hit $9.15 billion in 2024 (↑ 23.7 % YoY) and is set to exceed $10.52 billion in 2025 (↑ 15 %).

Platform Shifts: TikTok UGC challenges grew 35 % YoY in H1 2025, but sponsored content spending growth on TikTok slowed to 17 % in 2025 (now on par with YouTube & Instagram).

Nano-Influencers’ Impact: Nano- and micro-influencers (≤ 50 K followers) comprise ~75.9 % of Instagram’s influencer base and drive 3× the engagement of macro-influencers.

Podcast Growth: US podcast creator revenues to exceed $1 billion in 2025; 62 % of Millennials trust host-read branded integrations more than traditional ads.

Black screen surrounded by a red wireframe 3D cube outline.
A person lying on grass with legs in blue socks hanging upside down, drying socks on a clothesline against a clear blue sky.

ESG & Sustainability

Willingness to Pay Premiums: 60 % of Millennials and 59 % of Gen Z are willing to pay more for sustainable products; Gen X at 64 % and parents (proxy for Gen Alpha) at 76 %.

Eco-Guilt & Behavior: 90 % of global consumers (72 % in the US) are more likely to buy from brands with sustainable packaging; 72 % are willing to pay extra for eco-friendly products.

Content Efficacy: “ESG Trust in 15 s” LinkedIn shorts generated 4× more shares than generic CSR posts; Instagram capsule visuals featuring behind-the-scenes sourcing see 42 % higher saves among Millennials.

Top Search Queries: “Sustainable packaging” (+22 % QoQ), “carbon footprint brands” (+18 %), “ethical sourcing” (+15 %), “clean beauty” (+12 %), “green tech investing” (+9 %).

Augmented Reality & Emerging Platforms

Mainstream AR Adoption: By 2025, nearly 60 % of US population will be frequent AR users; 92 % of Gen Zers want to use AR tools for e-commerce decisions; 98 % of AR adopters find it helpful in purchase decisions.

Mobile AR Market: US mobile AR market estimated $13.8 billion in 2025; forecast to reach $39 billion by 2027 (global market projected $49.6 billion in 2025).

AR in Retail & Real Estate: 90 % of Americans are open to using AR for shopping; AR-enabled products see 94 % higher conversion than non-AR; 82 % of B2B buyers say AR demos accelerate purchase decisions.

Gaming & Gen Alpha: 340 000 unique US visitors accessed branded Roblox/Minecraft experiences in H1 2025; 90 % of Gen Zers (and proxy Gen Alpha parents) are willing to use AR to visualize furniture/apparel.

A woman applies facial cream to her cheek with her finger.

Actionable Takeaways

Woman wearing a green knit balaclava, black blazer, black pants, and white heeled boots sitting on the floor in a studio with a plain background.

Segment by Generation

Embrace AI Across Touchpoints:

Use AI-driven dynamic creative in programmatic campaigns to achieve +22 % engagement lift on Instagram Reels and TikTok.

Integrate AI chatbots on DTC sites, optimizing for voice search (31 % of Gen Z use chatbots for discovery).

Optimize Influencer Mix:

Reallocate 20 % of influencer budget to nano-influencers (≤ 50 K followers) on TikTok/IG, driving 3× higher engagement.

Sponsor branded podcast segments; 62 % of Millennials respond better to host-read integrations—US podcast ad revenue exceeds $1 billion in 2025.

  • Launch micro-UGC TikTok challenges (+35 % UGC growth), AI-powered AR filters (63 % encountered via TikTok/IG), sustainability cues (56 % buying eco-packaging).

  • Invest in Instagram capsule-carousels featuring carbon-neutral credentials (42 % higher saves) and branded podcasts with ESG proof points (62 % trust host-read).

  • Pilot AR showroom tours for luxury real-estate (18 % adoption → +17 % leads), publish LinkedIn thought-leadership on ESG performance (64 % prioritize sustainability), leverage email newsletters.

  • Test branded Roblox/Minecraft mini-games tied to real-world rewards (340 000 unique visitors H1 2025), and AR try-ons for kid-friendly products (90 % US openness).

Elevate ESG Authenticity:

Launch a live ESG dashboard (Google Data Studio) showing carbon offsets, % recycled materials, and community impact—transparent data builds trust.

Publish “ESG Trust in 15 s” LinkedIn shorts; these posts garner 4× more shares than generic CSR updates.

Experiment with AR & Phygital:

Develop AR try-on filters for hero products by Q4 2025; partner with Shopify/Meta AR to prototype quickly.

Plan a phygital pop-up at a major event (e.g., Miami Art Week) with QR-linked digital collectibles; 71 % of AR adopters say AR boosts purchase confidence.

A woman with dark hair tied back, wearing a brown leather jacket, standing in front of two women with similar outfits and hairstyles in a plain indoor setting.
A dark-skinned woman with a short hairstyle wearing a red turtleneck sweater, against an orange gradient background.

H2 2025 Forecasts

AI & Digital Ads:
– US AI-in-marketing market to exceed $60 billion by end-2025 (↑ 36.6 % CAGR).
– US digital ad spend to reach $330 billion by Q4 2025; AI-programmatic to account for 60 % of spend.

Influencer & UGC:
– US influencer spend to near $12 billion by year-end 2025; TikTok’s growth slows, but Instagram/YouTube regain share.
– Nano-influencers will comprise 80 %+ of Instagram’s influencer base by late 2025.

ESG:
– 80 % of US consumers will prioritize brands with transparent ESG dashboards (↑ 30 % demand from Q2 2025).
– Carbon-offset–focused campaigns on LinkedIn expected to generate 4.5× more shares vs. generic CSR in Q4 2025.

AR & Emerging Platforms:
– US mobile AR market to grow to $16 billion by Q4 2025 (from $13.8 billion H1 2025).
– 90 % of Americans open to AR shopping; AR-enabled products will see 94 % higher conversion rates.
– Gen Alpha interest peaks during holiday season; branded Roblox experiences to double in adoption (projected +100 % vs. H1).

Adopt a Generational Mindset
– Don’t treat your audience as monolithic. Use micro-segmentation by age, platform, and value drivers (e.g., sustainability for Millennials, authenticity for Gen Z).
– Build separate content playbooks: Gen Z needs quick, raw UGC on TikTok; Millennials prefer polished carousel visuals with ESG proof points; Gen X demands AR demos and long-form thought pieces; Gen Alpha engages via gamified experiences.

Invest in Data-Driven Creativity
– Leverage Audience Intelligence Lab insights to inform every creative brief. Begin each campaign with explicit generational codes—colors, tone, formats.
– Use AI to produce rapid visual prototypes and iterate based on real-time performance data.

Prioritize Transparency & Authenticity
– Publish live ESG metrics in an open dashboard—share carbon offsets, recycled content %, and community investments. Real results matter more than aspirational pledges.
– Encourage employees or micro-influencers to share behind-the-scenes content—authentic voices drive trust.

Embrace Emerging Tech, but Start Small
– Test AR filters and mini-games in controlled pilots before scaling. A simple AR “try-on” prototype can deliver 94 % higher conversion vs. static images.
– Use AI-powered chatbots for product discovery—31 % of Gen Z and Millennials already rely on them.

Build a Phygital Presence
– Combine offline pop-ups with digital collectibles (e.g., NFTs) to capture audience attention. Phygital activations can drive 50 %+ engagement over digital-only.
– Host hyper-localized events (NY streetwear drop, Miami art-tech showcase) that tie back into global social campaigns.

Collaborate with Nano- & Micro-Influencers
– 75.9 % of Instagram’s influencer base are nano/micro-influencers—allocate 20 % of budget to these creators to achieve 3× higher engagement.
– For each generation, partner with respected voices: TikTok beauty gurus for Gen Z, wellness podcasters for Millennials, LinkedIn thought-leaders for Gen X, and family-friendly channels for Gen Alpha.

Create Iterative, Short-Form Content
– Aim for at least one weekly “culture-drop” on TikTok or Reels that responds to trending topics. Even a 48-hour AI-driven visual drop can yield +9 % ER.
– Use “ESG Trust in 15 s” LinkedIn shorts to maintain top-of-mind among Millennial/Gen X audiences. Short-form content scales quickly and keeps engagement high.

Monitor & Optimize Continuously
– Track key metrics every week: CTR (target ≥ 0.6 %), InMail reply (≥ 10 %), Reels watch-through (≥ 40 %), and UGC participation. Adjust creative or targeting within 7 days if underperforming.
– Conduct quarterly CÉDO Index updates and share highlights with your team—staying agile ensures you capture new micro-cultures as they emerge.

Cultivate Community Over Transactions
– Build branded communities on Discord or closed Facebook groups for loyal fans—focus on exclusive AI previews or behind-the-scenes ESG updates.
– Engage in two-way dialogue: host monthly AMAs (“Ask Our Audience Lab”) or weekly polls to gather live feedback.

Plan for H2 2025 & Beyond
– Anticipate the rise of AI-generated voice commands and personalized short-form content (e.g., AI voice-narrated Reels for Gen Z).
– Prepare for tighter ESG regulations (SEC reporting) by Q4 2025—embed transparent metrics now to avoid compliance crunches later.
– Watch for emerging platforms like Snapchat’s new AR ecosystem or YouTube’s long-form Shoppable Videos. Invest 5 % of budget into experimenting with these as soon as they launch.

General Recommendations for Brands

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How Cédo Can Help

At Cédo, we turn these insights into action. Our services are built around three core pillars, each designed to help your brand connect authentically with every generation:

Audience Intelligence Lab
– We conduct social listening, rapid focus sprints, and quarterly CÉDO Index reports to decode generational codes and micro-cultures.
– You receive a custom PDF guide, video walkthrough, and ready-to-use playbooks—so your team knows exactly how to speak to Gen Z, Millennials, Gen X, and Gen Alpha.

AI-Creative & Production
– From AI-powered “culture-drops” to AR prototypes, we produce turn-key visuals and videos that resonate immediately.
– Our end-to-end pipeline (brief → prompt-engineering → final assets) ensures you launch on-trend content in days, not weeks—boosting engagement by +22 % vs. static ads.

ESG Storytelling & Social Projects
– We build authentic ESG narratives—backed by live dashboards, anti-greenwashing audits, and behind-the-scenes stories.
– Our “ESG Trust in 15 s” shorts, capsule visuals, and phygital pop-up activations place transparency at the forefront—earning 4× more shares than generic CSR.

Ready to Elevate Your Brand?

Whether you need precise generational data, rapid AI-driven creative, or transparent ESG storytelling, Cédo has you covered. Let us help you transform these H1 2025 insights into campaigns that cut through the noise and drive real results in H2 2025.

Feel free to email us with any questions. We’d be happy to schedule a 15-minute introductory call.

Prepared by Cédo Audience Lab

info@cedidigital.com